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A credit card company has a card member with an annual margin of $4,500 and...

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Finance

A credit card company has a card member with an annual margin of $4,500 and the typical retention rate for card holders is 80%. What is the customer lifetime value of this cardholder if the interest rate used to discount future cash flows is 12%? If the company increased the retention rate to 90%, what would the customer lifetime value be?

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